E-commerce

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E-commerce
Chapter 8

• Roots of E-commerce
• Overview of Electronic Commerce
• E-commerce Applications
• Mobile Commerce
• E-commerce Implementation

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E-commerce

• E-Commerce refers to systems that support
  electronically executed business transactions

• Although e-commerce covers all forms of
  electronic transactions, it is typically used in
  reference to Internet-based transactions.

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E-commerce
Food for thought and discussion
www.arcticways.com How do you think
ArcticWays.com has impacted the life of villagers
in bush Alaska and benefited the world?
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7.1 The Roots of E-commerce
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E-commerce History
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Electronic Data Interchange (EDI)

• EDI uses private communications networks called
  value-added networks (vans) to transmit
  standardized transaction between partners and
  suppliers.

Many EDI applications are moving from VANs to the
Internet
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Transaction Processing

• A transaction is an exchange or transfer of
  goods, services, or funds

• A Transaction Processing System (TPS) is an
  information system that supports and records
  transactions.

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Transaction Processing

• Data collected in Transaction Processing Systems
  feeds into more sophisticated Management
  Information Systems (MISs) to provide useful
  information.

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Transaction Processing Cycle

1. Data Collection
2. Data Editing
3. Data Correction
4. Data Manipulation
5. Data Storage
6. Data Output

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Transaction Processing Systems

• There are a variety of TPSs that serve various
  functions within an organization.

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7.2 Overview of E-commerce
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Types of E-commerce

• Business-to-consumer (B2C)
• Business-to-business (B2B)
• Consumer-to-consumer (C2C)

Which is used most?
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B2B Rules!
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Buyers Perspective
Consider how these activities are supported in
e-commerce.
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Sellers Perspective
Consider how these activities are supported in
e-commerce.

• Market Research
• Product/Service Production
• Marketing and advertising
• Payment support
• Delivery
• After-sales support

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Benefits and Challenges

• Farmyard Nurseries -Taking the business online
  expanded its market from primarily local
  customers to customers all around the world.
• Consider how this must have effected operations.

www.farmyardnurseries.co.uk
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Benefits and Challenges

• In order to save its technology-threatened
  business, Kodak changed its image from a film
  company to a digital picture company.

www.kodak.com
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7.3 E-commerce Applications
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Retail E-Commerce

• E-tailing has dramatically influenced the way
  people shop by providing customers with product
  information and the ability to comparison shop.

www.mysimon.com www.nextag.com www.dealtime.com ww
w.pricescan.com www.pricegrabber.com
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Online Clearinghouses, Auctions, and Marketpaces

• Online clearinghouses, Web auctions, and
  marketplaces provide a platform for businesses
  and individuals to sell their products and
  belongings.

www.ubid.com www.ebay.com
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B2B Global Supply Management

• Global supply chain management (GSM) provides
  methods for businesses to find the best deals on
  the global market for raw materials, and supplies
  needed to manufacture their products.

www.ariba.com
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Electronic Exchanges

• An electronic exchange is an industry specific
  Web resource created to provide a convenient
  centralized platform for B2B e-commerce among
  manufacturers, suppliers and customers.

www.covisint.com www.worldwideretailexchange.org
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Marketing

• The Web is used for unsolicited advertising,
  solicited product information, and market
  research.

The Web empowers marketers (www.doubleclick.com)
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Marketing

• The Web is used for unsolicited advertising,
  solicited product information, and market
  research.

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Banking, Finance, and Investment

• Many banking, finance and investment transactions
  now occur online.

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7.4 Mobile Commerce
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M-commerce

• M-commerce is a form of e-commerce that takes
  place over wireless mobile devices such as
  handheld computers and cell phones.

www.luckymag.com

• Popular m-commerce products and services include
  ring tones, games, music, videos, messaging
  services, etc.

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M-commerce Technology

• Wireless Application Protocol (WAP) used to
  create m-commerce applications.
• Wireless Markup Languages (WML) used to create
  Web pages and applications for small displays.
• Infrared and Bluetooth for close range,
  device-to-device communications.

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M-commerce Delivery

• Through cell phone service provider
• Over the mobile Web
• Through SMS Texting
• Through short-range wireless data communictaions

U.S. wireless music market to surge to 1.2
billion by 2009.
GPS technology will lead to location-based
m-commerce applications.
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Proximity payment systems

• Proximity payment systems make use of Infrared,
  Near Field Communication (NFC), or RFID
  technologies to support contactless payments
  using a cell phone.

www.vivotech.com/products/vivo_wallet
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7.5 E-commerce Implementation
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E-commerce Host

• An e-commerce host is a company that takes on
  some or all of the responsibility of setting up
  and maintaining an e-commerce system for a
  business or organization.

49.95 per month
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E-commerce Host

• Office depot contracted IBM to design and
  implement its B2B/B2C system.

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E-commerce Implementation

• E-commerce implementation requires investment in
• Infrastructure
• Hardware and Networking
• Software

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Web Services

• Web services are programs that automate tasks by
  communicating with each other over the Web.

www.w3.org/2002/ws/ http//en.wikipedia.org/wiki/W
eb_service http//msdn.microsoft.com/webservices/
http//java.sun.com/webservices/
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Building Traffic
3 Cs Content, Community, Commerce
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Payment Systems

• Credit card transactions

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Payment Systems

• E-cash is a Web service that provides a private
  and secure method of transferring funds from a
  bank account or credit card to online vendors or
  individuals for e-commerce transactions.

www.paypal.com
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International Markets
www.landsend.com http//www1.landsend.co.jp http/
/www1.landsend.de
Through a process called localization, companies
hire international Web developers to assist with
translating Web site content into different
languages for different cultures.
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Security Issues
Cardswipe Keyboard

• Identity Verification
• A digital certificate is a type of electronic
  business card that is attached to Internet
  transaction data to verify the sender of the
  data. www.verisign.com
• Encryption uses high-level math functions and
  computer algorithms to encode data.

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Chapter 8 Questions?